The Gunners star only has six months left on his current contract at the Emirates Stadium and is heavily linked with leaving the club in the current window.
Bundesliga outfit Schalke have emerged as the favourites to land the player as they seek to fill a vacant spot in their defensive department, provided centre-back Kabak succeeds in sealing a loan move to Liverpool.
And according to Sky Deutschland, Mustafi has agreed personal terms with Schalke to move to Germany on a short-term deal.
The centre-back has agreed to join the German top flight outfit on a six-month contract.
The transfer deadline in Germany is set at 5pm UK time and Schalke are keen on getting the deal over the line before the clocks runs out.
However, they are yet to confirm Kabak’s departure to Anfield and Mustafi is waiting in the wings to slot in to the Turk’s spot as soon as his exit is confirmed.
Liverpool are close to potentially snapping up Kabak, as the Schalke star is expected to join on loan with an option to buy.
